I returned the RMD to my IRA, receiving a 1099-R and 5489 showing the distribution and rollover. TurboTax correctly shows that the distribution is not taxable. But TurboTax reduces my basis by that amount. Weird. Please help.
You should not have a 8606 form at all for a CARES act rollover.
Delete the 1099-R form and check you forms list. If there is a 8606 there, is there another 1099-R that created it?
Re-enter the 1099-R for the rollover and be SURE to answer the RMD question that "NONE of this distribution was a RMD" because it was not. You should go directly to the screen for a rollover and never get to the "basis" questions.
You should not have a 8606 form at all for a CARES act rollover.
Delete the 1099-R form and check you forms list. If there is a 8606 there, is there another 1099-R that created it?
Re-enter the 1099-R for the rollover and be SURE to answer the RMD question that "NONE of this distribution was a RMD" because it was not. You should go directly to the screen for a rollover and never get to the "basis" questions.
Thanks for the help! You solved the problem. The basis issue resolved itself when I followed your instructions on the RMD question. There were no basis questions in the interview. I had noticed the change in the 8606 and couldn't figure out why it was incorrectly stating the basis.
Be well.